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According to Classical Macroeconomic Theory,the Flexible Interest Rate

Question 115

Multiple Choice

According to classical macroeconomic theory,the flexible interest rate


A) is the incentive that encourages businesses to obtain credit.
B) will tend to fall when the quantity of credit demanded exceeds the quantity of credit supplied.
C) will tend to rise when the supply of credit exceeds the demand for credit.
D) ensures that saving cannot exceed investment spending for extended periods of time.

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